Earnings Release • Aug 17, 2020
Earnings Release
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Capital and income growth from a diversified portfolio of investments in the Asia Pacific region designed to outperform the MSCI AC Asia Pacific Free Index (£).
Global equities consolidated their gains of the previous three months in July, as increased Covid-19 infection rates in the southern United States and Europe tempered hopes for a further normalisation of economic activity, while corporate earnings reports confirmed the difficult trading experienced in many sectors since March. Global equities declined 1% over the month, with Japan (-8%) and the UK (-4%) the laggards, while Asian and emerging markets were almost unchanged and the US down only marginally.
Witan Pacific's NAV total return was -0.8% in July, outperforming the benchmark's -1.5% total return. The share price total return was +1.7%, benefiting from a narrowing of the discount. In the first six months of the Company's financial year, the NAV total return of
Witan Pacific's NAV total return was -0.8% in July, outperforming the benchmark's -1.5% total return. The share price total return was +1.7%, benefiting from a narrowing of the discount.
+2.3% was ahead of the MSCI Asia Pacific benchmark measure's gain of +1.3%, while the share price total return was +6.6%. Further details of performance during the first half will be included in the Company's interim results due to be released in September.
Of greater potential significance for shareholders was the announcement on 22 July that, following an extensive review of the Company's management arrangements, the Board proposed to appoint Baillie Gifford & Co Limited as its future investment manager, with a
changed investment focus to invest in Chinese companies, replacing the current multi-manager structure investing in Asia-Pacific equities, including Japan. It is also proposed to change the name of the Company to the Baillie Gifford China Growth Trust plc. Given the significant change in objective, this is subject to certain shareholder approvals, which will be sought at an Extraordinary General Meeting (EGM) to be held in September. For those who may instead seek an exit from their investment, a tender offer for up to 40% of the shares at a 1% discount to the prevailing NAV is also proposed.
A link to the announcement of the proposed changes may be found here. A further circular is expected to be issued later in August, with details of the proposals and convening an EGM to vote on them. In the meanwhile, the existing investment remit and multi-manager structure remain in place, although shareholders and potential investors should be aware of the likely changes due. Witan's involvement as executive manager will terminate upon the approval of the new arrangements.
Further information about the Company is available on Witan Pacific's website, www.witanpacific.com
Trust statistics
| £224m | 350.00p | 367.13p | (4.7%) | 2.04% |
|---|---|---|---|---|
| Gross assets | Share price | NAV per ordinary Share† |
Premium (Discount) |
Yield‡ |
Source: BNP Paribas as at 31.07.20.
‡ Based upon the total dividend for the financial year ending 31.01.20.
† NAV is inclusive of income.
| Epic Code | WPC |
|---|---|
| Sector | Far East - Including Japan |
| Trust Type | Conventional |
| Launch Date | 1907 |
| Financial Year End | 31 January |
| Dividend Payment Dates | July, October |
| Last Ex Dividend Date | 11 June 2020 |
| AGM | June |
| Shares in Issue (excluding treasury) | 60,893,904 |
| Ongoing Charges‡ Including performance fee Excluding performance fee |
1.07% 1.00% |
Source: BNP Paribas as at 31.07.20. ‡Ongoing charges as disclosed in the Annual Report for the year ended 31.01.20. Information about other costs is also included in the Company's Key Information Document (KID) and disclosed in the table on page 22 of the 2020 Annual Report, both of which may be found on the Company's website.
| Ex-div date | Pay date | Type | Amount per share |
|---|---|---|---|
| 17.10.2019 | 28.10.2019 | Interim 2020 | 2.55p |
| 11.06.2020 | 03.07.2020 | Final 2020 | 4.60p |
*Please remember, past performance is not a guide to future performance, and the value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested. Net Asset Value ("NAV") performance is not the same as share price performance and investors may not realise returns the same as NAV performance.
| 33% | Trust | Index | Under/overweight | ||
|---|---|---|---|---|---|
| Japan | 33 | 35 | |||
| Japan | China/Hong Kong | 30 | 30 | ||
| South Korea | 9 | 7 | |||
| Australia | 8 | 9 | |||
| Taiwan | 8 | 8 | |||
| India | 5 | 5 | |||
| Singapore | 4 | 2 | |||
| The Philippines | 1 | 1 | |||
| 1% | Other | 2 | 3 | ||
Country breakdown excluding cash. Total may not sum to 100% due to rounding. Source: BNP Paribas as at 31.07.20.
| Samsung Electronics | 4.0 |
|---|---|
| Taiwan Semiconductor | 4.0 |
| Tencent | 3.3 |
| China International Travel Service | 1.5 |
| LG Chemical | 1.4 |
| Minth Group | 1.4 |
| Hoya | 1.4 |
| Anritsu Corporation | 1.3 |
| Pharmaron Beijing | 1.1 |
| China Resources Land | 1.1 |
| Macquarie Group | 1.1 |
| Wuliangye Yibin | 1.1 |
| Breville Group | 1.1 |
| Shin-Etsu Chemical | 1.0 |
| Ping An Insurance | 1.0 |
| Keppel DC REIT | 0.9 |
| Misumi Group | 0.9 |
| BHP Billiton | 0.9 |
| Pigeon Corporation | 0.9 |
| Shenzhou International | 0.8 |
| Top 10 Holdings | 20.5 |
| Top 20 Holdings | 30.2 |
| On a look through basis across managers, excluding open-ended funds. |
|
| Source: BNP Paribas as at 31.07.20. |
8%1% Australia
| Consumer Goods | 23 |
|---|---|
| Industrials | 16 |
| Technology | 15 |
| Financials | 14 |
| Consumer Services | 7 |
| Health Care | 6 |
| Other | 11 |
| Open Ended Funds | 4 |
| Cash | 5 |
| Total may not sum to 100% due to rounding. Source: BNP Paribas as at 31.07.20. |
| 3m | 6m | 1yr | 3yrs | 5yrs | 10yrs | Financial YTD | |
|---|---|---|---|---|---|---|---|
| Share Price (Total Return) | 11.3 | 6.6 | 5.2 | 16.2 | 57.4 | 135.7 | 6.6 |
| Net Asset Value (Total Return) | 8.8 | 2.3 | ‑1.7 | 5.7 | 44.5 | 99.0 | 2.3 |
| Benchmark‡ (Total Return) | 7.8 | 1.3 | ‑0.4 | 12.0 | 58.1 | 117.2 | 1.3 |
| Relative NAV Performance | 1.0 | 1.0 | ‑1.3 | ‑6.3 | ‑13.5 | ‑18.3 | 1.0 |
| Q2 2015 Q2 2016 |
Q2 2016 Q2 2017 |
Q2 2017 Q2 2018 |
Q2 2018 Q2 2019 |
Q2 2019 Q2 2020 |
|
|---|---|---|---|---|---|
| Share Price (Total Return) | 3.6 | 26.5 | 5.5 | 3.5 | 5.9 |
| Net Asset Value (Total Return) | 10.4 | 21.1 | 5.5 | 0.2 | 2.2 |
| Benchmark‡ (Total Return) | 6.6 | 26.6 | 8.5 | 2.9 | 4.4 |
| Relative NAV Performance | 3.8 | ‑5.5 | ‑3.0 | ‑2.8 | ‑2.2 |
Relative numbers may not add up due to rounding
† Source: Morningstar, total return includes the notional reinvestment of dividends.
‡The benchmark for the Witan Pacific Investment Trust plc is the MSCI AC Asia Pacific Free Index (£). Source: MSCI, for more information please go to www.witanpacific.com/legal-information.
*Please remember, past performance is not a guide to future performance, and the value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested.
Aberdeen Asset Managers Limited ("Aberdeen"), which has delegated management of the Company's assets to Aberdeen Asset Management Asia Limited, was established in Asia in 1992 and, as at 31 December 2019, was managing £47.3bn of assets in Asia. The Asian equity team, made up of over 40 fund managers in the region, is headed up by Flavia Cheong. The team follow a fundamental investment style emphasising the identification of good quality companies on reasonable valuations relative to their growth potential.
Dalton Investments LLC ("Dalton") is an independent investment boutique established in Santa Monica, California in 1999. Dalton manages US\$3.4bn (as at 31 December 2019) in strategies focused on Asian, global and emerging market equities. The firm is independently owned by its founders, each of whom has over 30 years of investment experience.
Matthews International Capital Management LLC ("Matthews Asia") is an independent, privately owned firm, and the largest dedicated Asia investment specialist in the United States. Matthews believes in the long-term growth of Asia and employs a bottom-up, fundamental investment philosophy with a focus on longterm investment performance. As at 31 December 2019, Matthews Asia had US\$27.3bn in assets under management.
Robeco Institutional Asset Management B.V. ("Robeco") is a pure-play international asset manager founded in 1929 with headquarters in Rotterdam, the Netherlands, and 17 offices worldwide. A global leader in sustainable investing since 1995, its unique integration of sustainable as well as fundamental and quantitative research enables the company to offer investors an extensive selection of active investment strategies, for a broad range of asset classes. As at 31 December 2019, Robeco had EUR 173 billion in assets under management, of which EUR 149 billion is committed to ESG integration. Robeco is a subsidiary of ORIX Corporation Europe N.V.
Witan Pacific's shares can be traded through any UK stockbroker and most share dealing services, including online platforms that offer investment trusts.
A growing number of platforms offer investment trusts directly to investors including AJ Bell Youinvest, Barclays Smart Investor, Fidelity, Hargreaves Lansdown, Halifax Share Dealing Limited, Interactive Investor and The Share Centre.
Advisers who wish to purchase Witan Pacific shares for their clients can do so via a stockbroker or via a growing number of dedicated platforms. These include FundsNetwrok, James Hay, Novio, Standard Life Wrap and Transact.
Please see the important announcement regarding proposed changes in the investment management agreement of the Company.
A broader view of the entire Asia Pacific region
More information available via the company website
www.witanpacific.com
Please read the most recent Witan Pacific Key Information Document (KID) before placing an investment in Witan Pacific Investment Trust, which is available on the website www.witanpacific.com.
Chair
ANDREW ROBSON
Audit Committee Chairman
SUSAN PLATTS‑MARTIN
DERMOT MCMEEKIN Senior Independent Director, Nomination & Remuneration Committee Chairman
This marketing communication is provided for informational purposes only and should not be construed as constituting an offer or a solicitation to buy or sell interests or investments in Witan Pacific Investment Trust plc. Any reference to individual securities does not constitute a recommendation to purchase, sell or hold the investment.
Please remember that past performance is not a guide to future performance. Witan Pacific Investment Trust is an equity investment. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuations and you may not get back the amount originally invested. The share price may trade above and below the NAV per share representing either a premium or discount to the share price respectively.
This marketing communication is issued and approved by Witan Investment Services Limited. Witan Investment Services Limited is registered in England no. 5272533 of 14 Queen Anne's Gate, London, SW1H 9AA. Witan Investment Services Limited provides investment products and services and is authorised and regulated by the Financial Conduct Authority. Calls may be recorded for our mutual protection and to improve customer service.
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